So, I am sticking to the one pair trade as a relatively New trader, so should I open a different pair while I have my current position open and running. Or just stick to this position and see how it goes?
Im in no rush…
Workload should not be an issue regardless of your time-frame assuming you have a well-defined mental picture of your trade set-up and entry pattern. When you enter a trade, you ought to have two exit prices in sight - one where you put your stop-loss and one where you want to close and take profit. You may wish to exit at intermediate levels but these should not need unbroken supervision.
A bigger issue is correlation. For example, if you’re long EUR/USD, and you want a diverse position so as not to increase your market risk, there is no point going long GBP/USD, you might just as well double the size of your EUR/USD.
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@tommor raises a good point about correlated pairs, both positive and negative. There are tables you can find that allow you to see the % correlation between pairs so if you think you have found a decent trade and already have one open it’s worth checking to see if it’s basically the same trade again or the total opposite and you are doubling risk for the same outcome.
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Here I am to haunt you again champ.
See I have real issues with this statement. It’s a sure fire recipe to blow ones account. Markets are dynamic, price is dynamic. Having fixed SL n TP targets fail time after time after time.
Let’s take one of the most famous trading systems of all time. The Turtle’s. Where turtles given a SL and TP target?. Hell no. They used a fixed formula to place their initial order and calculate position size. But after that they let the trade run and do its thing, only exiting once an exit signal was generated.
So, there you go @simsimony. Important rule from @therealInsideBar. Never trade to a fix SL n TP target. Just as the market produces entry signals, it produces exit signals. Learning when to exit a trade is more critical than when to enter one.
As the boys burning 16 candles each end say, your job as a trader consists of 4 simple tasks.
- Identify,
- Filter,
- execute and
- manage
Fixed SL n TP targets is not trade management! If 90% of trades blow there account and 90% used SL TP targets??? Don’t do what 90% do
Sticking to one pair will force you to start seeing trades that don’t exist, you’ll over-trade and then blow your account. Diversify, as soon as you can.
@simsimony - Its worth reading up about the Turtle Traders and the basic principles they followed. Some commentators criticise the Donchian breakout they used but the underlying principles remain good with other trend-following approaches too.
If you are planning to trade on multiple instruments, I would suggest you to pick up forex pairs which are least correlated. 0 or negative correlation will be the best in fact. You can use correlation matrix (trading tool) to select your basket of forex pairs.